Moneyme Ltd. · ASX:MME
Moneyme — FY2021 Earnings Presentation
41 slides from Moneyme's earnings presentation, Aug 30, 2021
Slide 1: FY21 Results Presentation
FY21 Results Presentation 30 August 2021 moneyme.com.au This presentation is authorised for release on ASX by the Board of MoneyMe Limited Copyright 2021 | MoneyMe Limited | ACN 636 747 414 | Australian Credit Licence Number 442218
Slide 2: The MoneyMe difference
1 The MoneyMe difference 6 Financial highlights 17 Customer & product highlights 27 Strategy & outlook 30 Appendix Page 1
Slide 3: FY21 key highlights
FY21 key highlights $333m More than doubled our gross customer receivables to $333m up 149% FY21 gross receivables (up 149%) Increased customer lifetime value with future contracted cash interest up by 240% to $98m in FY21, 3x FY20 Delivered $12m cash NPAT with significant expansion, new products an
Slide 4: Our proprietary Horizon technology platform
Our proprietary Horizon technology platform advanced Cloud based and streamlined technology stack facilitates automated approval and settlement Data analytics Horizon Seamless MoneyMe’s Cloud-based customer experience Efficiency through automation technology platform Data protection API Native for i
Slide 5: Our mission
Our mission To be the favourite credit provider for Generation Now We are making credit fair for everyone Page 4
Slide 6: ESG at MoneyMe: Building profit with purpose
ESG at MoneyMe: Building profit with Environment purpose Digital business model and virtual Achieved 100% carbon-neutral energy for products minimise plastic, paper, and Sydney office with further plans to reduce general waste production company’s carbon emissions MoneyMe’s sustainability approach i
Slide 7: Financial highlights
1 The MoneyMe difference 6 Financial highlights 17 Customer & product highlights 27 Strategy & outlook 30 Appendix Page 6
Slide 8: Financial highlights
Financial highlights 1 Record receivables, profitable returns, sound credit & book quality Gross customer receivables ($m) Total revenue ($m) Cash NPAT ($m) 333 58 12 48 10 32 134 5 149% 87 21% 16% FY20 to FY21 FY20 to FY21 FY20 to FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Total originations
Slide 9: Robust returns
Robust returns Profit & asset growth Revenue growth (actual + contracted) ($m) 25 600 • Cash NPAT $12m for FY21, increasing from 333 $10m for FY20 and $5m for FY19 20 400 98 134 87 200 FY22 contracted cash • Revenue $58m for FY21, increasing from 15 Cash NPAT ($m) interest ($m) $48m for FY20 and $32
Slide 10: Record receivables growth
Record receivables growth Total originations ($m) Gross customer receivables ($m) • Originations $384m for FY21, increasing from $179m for FY20 and $117m for FY19 81% 95% CAGR CAGR • Closing gross customer receivables $333m for FY21, increasing from $134m for FY20 and $87m for FY19 384 333 • Persona
Slide 11: Diversified receivables growth
Diversified receivables growth Logistics, Transport & Supply Other 11% 58% Hospitality, Food & • The geographical spread of MoneyMe’s Other Beverage customer base is in line with the Australian 10% NSW 9% population 34% WA Medical & 9% Healthcare • The median customer age is 30 which reflects Geogra
Slide 12: Increasing revenue returns
Increasing revenue returns Total contracted interest ($m) Increasing average receivable value ($) Offer term, value and pricing changes made in early FY21 following the settlement of the Major 98 5,744 Bank warehouse in Sept 2020 have supported significant increases to receivable lifetime revenue re
Slide 13: Record revenue growth
Record revenue growth Total revenue ($m) Future contracted cash interest ($m) The record receivable growth, supported by targeted favourable diversification, has driven record revenue growth: 34% 165% FY19 to FY21 CAGR FY19 to FY21 CAGR • Revenue of $58m for FY21, increasing from $48m for FY20 and $
Slide 14: Reducing credit risk expense ratios
Reducing credit risk expense ratios Provisioning (%) Net charge off (%) Lower receivable credit risk and an improved economic outlook are supporting reducing credit risk expense ratios: 10.4% 18% 25% 8% 9.6% 7% • Provisioning 7.9% of gross customer FY20 to FY21 7.9% FY20 to FY21 5% receivables for F
Slide 15: Reducing office operating expense ratios
Reducing office operating expense ratios Core office operating expense to receivables (%) Sales & marketing expenses to originations (%) 18% 34 3.0% 12 16% 2.9% 10 Reduced operating expense ratios continue to 16% 29 2.9% 2.8% 10 23 reflect the significant economy or scale 14% 12% 24 2.8% 8 opportuni
Slide 16: Reducing funding expense ratios
Reducing funding expense ratios Funding costs as % of average borrowings Funding sources over time ($m) • Major Bank warehouse established in Sept 350 55% 2020 • This has supported a 55% step change FY20 to FY21 300 reduction in funding costs in FY21. Gross customer receivable ($m) 12% 11% • Corpora
Slide 17: Robust growth momentum into FY22
Robust growth momentum into FY22 Record receivables growth ($m) Revenue growth momentum ($m) 450 384 400 58 Robust Cash NPAT outcomes for FY22 and 350 beyond will be well supported by: 48 50 300 250 Gross customer FY22 contracted • Record FY21 originations growth and 179 receivables ($m) cash intere
Slide 18: Customer & product highlights
1 The MoneyMe difference 6 Financial highlights 17 Customer & product highlights 27 Strategy & outlook 30 Appendix Page 17
Slide 19: Customer highlights
Customer highlights Market-leading customer satisfaction, customer >99% experience with digital simplicity and multiple access Customers transacted on NPP points, ongoing robust customer diversification >80% Calls answered within 10 seconds Why our customers love us: 39% Customers have used at least
Slide 20: High customer satisfaction
High customer satisfaction Consistently high market leading customer satisfaction 1 with 78 NPS and strong ratings, reflecting high automation and target focus on customer outcomes. The online portal was user Money arrived within Very quick and helpful, got my money friendly, the process was super 1
Slide 21: AI-enabled & automated, yet still very personal
AI-enabled & automated, yet still very personal Applying from the app is super easy and money is in your bank account in less than 60 minutes. The best part is a personalised low interest rate and repayments made to fit your budget. • Offer range $2,100 to $50,000 (offer term 3 to 60 months) • Inter
Slide 22: Feature-packed virtual card for Generation Now
Feature-packed virtual card for Generation Now After an easy application, Freestyle is the virtual Mastercard® that can be used straight away! It’s packed with features and designed to manage credit with so much more control from the app. Beats the old credit card. • Credit limit up to $20,000 • Int
Slide 23: Our innovative shop now pay later solution
Our innovative shop now pay later solution MoneyMe+ offers an easy and fast solution at the point of sale. It has interest free terms and the retailer pays a merchant fee. It’s targeting the bigger ticket finance sector that has mostly been left to the traditional non- bank lenders to service • Laun
Slide 24: The smart way of selling property for agents and vendors
The smart way of selling property for agents and vendors Getting the house or apartment ready for sale is made easier with ListReady. Easy to set up and pay for the things that help you sell your property. • Service amount up to $35,000 • Service fee 4.4% (incl. GST) Customer Customer receivables Ag
Slide 25: Drive away finance in minutes
Drive away finance in 60 minutes Buying a car made easier and way more fun. Instead of taking days for finance, with Autopay it’s drive away in 60 minutes. A breakthrough innovation for the industry! • Direct to dealer & broker model • Individual & commercial loans both offered • Offer range up to $
Slide 26: Game changing innovation in the sector
Game changing innovation in the sector Secured vehicle finance that settles within 60 minutes, 7 days a week, enabling dealers and brokers to close deals on the spot and allows customers to drive away the same day Autopay key features Market opportunities 1 3m+ $12-16b Leverages Horizon proprietary
Slide 27: Exceptional dealership and broker response to Autopay
Exceptional dealership and broker response to Autopay “This partnership with Autopay allows us to “Autopay unlocks a new opportunity for brokers to “With Autopay, finance is no longer a friction point increase sales and offer an extremely fast finance get finance approved and settled on the weekend
Slide 28: Strategy & outlook
1 The MoneyMe difference 6 Financial highlights 17 Customer & product highlights 27 Strategy & outlook 30 Appendix Page 27
Slide 29: Accelerating returns through innovation, scale and technology
Accelerating returns through innovation, scale and technology for Generation Now Accelerating returns Market share gains Expanding New distribution We are creating value products channels • Take market share from traditional banks and and accelerating to launch large non-bank lenders Revenue diversi
Slide 30: Questions
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Slide 31: Appendix
1 The MoneyMe difference 6 Financial highlights 17 Customer & product highlights 27 Strategy & outlook 30 Appendix Page 30
Slide 32: Key operating measures
Key operating measures Notes A FY19 FY20 FY21 Returns Total revenue ($m) 32 48 58 Total revenue growth (%) 33% 49% 21% Revenue yield (%) 1 47% 43% 25% Future contracted cash interest ($m) 2 14 29 98 Cash NPAT ($m) 3 5 10 12 Customer receivables growth Originations ($m) 4 117 179 384 Originations gro
Slide 33: FY21 result margin analysis
FY21 result margin analysis FY21 $ millions %1 Revenue 58 25% Interest expense (11) (5%) Office operating expenses less non-recurring expenses (25) (11%) Gross charge offs (11) (5%) Depreciation & amortisation (2) (1%) Tax 2 1% Cash NPAT 12 5% Net interest margin 20% Opening gross customer receivabl
Slide 34: Measure definitions
Measure definitions Note Measure Definition 1 Revenue yield (%) Total revenue as a % of average gross customer receivables The sum of the total amount of interest payable by each customer receivable over the remaining life of the customer receivable contract (i.e. from 1 July onwards to 2 Future con
Slide 35: Income statement
Income statement $ millions FY19 FY20 FY21 Interest income 28 43 53 Other income 4 5 5 Total revenue 32 48 58 Interest expense (9) (13) (11) Sales & marketing expense (3) (5) (10) Product design & development expense (2) (3) (4) General & administrative expense (6) (10) (13) Customer receivable impa
Slide 36: Balance sheet
Balance sheet $ millions FY19 FY20 FY21 Cash and cash equivalents 6 35 26 Net customer receivables 78 121 306 Current tax asset 0 - 0 Deferred tax asset 1 4 6 Intangible assets 1 2 3 Right of use assets - 2 1 Property, plant and equipment 0 1 1 Other receivables 1 1 1 Total assets 87 167 346 Borrowi
Slide 37: Cash flow statement
Cash flow statement $ millions FY19 FY20 FY21 Income from customers 32 47 66 Payments to suppliers and employees (11) (16) (24) Net borrowings interest and fees paid (8) (13) (10) Income tax (paid) / received (0) (0) (2) Net cash inflows from operating activities 13 18 30 Net customer receivable dis
Slide 38: MoneyMe's products
MoneyMe’s products Offer range $2,100 – $50,000 Credit limit up to $20,000 Credit limit up to $50,000 Service amount up to $35,000 Service amount Up to $100,000 up to $15,000 Offer term 3 – 60 months Repayments spread Based on minimum 60 days 24 months 36 – 84 months over 24 – 60 months monthly repa
Slide 39: About us
About us MoneyMe is a leading player in the digital credit business with technology (Horizon Technology Platform) and AI to deliver highly automated innovative products and customer experiences. We originate through a diversified mix of credit products and distribution channels to create significant
Slide 40: Important Notices and Disclaimers
Important Notices and Disclaimers The information contained in this presentation has been prepared by MoneyMe Limited ACN 636 747 414 (Company) As a result, actual results or developments may differ materially from those expressed in the statements contained in and is general background information
Slide 41: www.moneyme.com.au
www.moneyme.com.au Copyright 2021 | MoneyMe Limited | ACN 636 747 414 | Australian Credit Licence Number 442218